Sub Shop in Allentown. Two employees work at $10.00/hour/employee (including overhead and benefits). Each employee works...

 

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Sub Shop in Allentown. Two employees work at $10.00/hour/employee (including overhead and benefits). Each employee works an average of 170 hours per month. The average revenue per customer is estimated at $8.00. The variable cost of serving each customer is estimated at $2.00. Rent is $3000 per month, and utilities cost $600 per month. A) Calculate how many customers per month are needed for the owner to breakeven. B) How many customers would need to be served per month to achieve a monthly profit of $8,000? Sub Shop in Allentown. Two employees work at $10.00/hour/employee (including overhead and benefits). Each employee works an average of 170 hours per month. The average revenue per customer is estimated at $8.00. The variable cost of serving each customer is estimated at $2.00. Rent is $3000 per month, and utilities cost $600 per month. A) Calculate how many customers per month are needed for the owner to breakeven. B) How many customers would need to be served per month to achieve a monthly profit of $8,000?

Answer rating: 100% (QA)

A To calculate the number of customers per month needed to break even we need to consider the fixed ... View the full answer